- European indices are trading higher
- The DAX is up about 0.20%, returning above 17,700 points
- EURUSD is up 0.17% to the level of 1.087
Today's cash session in Europe is proceeding in a positive mood. Practically all indices on the Old Continent are gaining, with increases reaching levels of 0.20-0.90%. The largest gains can be observed on the Spanish index SPA35, which is up 0.95% at the time of publication. This is followed by the Dutch NED25 (+0.85%). The German DAX index is gaining 0.20% to the level of 17,730 points.
DAX
The German index continues to consolidate around historical highs. In the event of a deeper correction, it is important to keep an eye on the level of 17,100 points, which is the upper limit of the last consolidation.
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Source: xStation 5
Macro data from Germany
In January 2024, Germany's calendar and seasonally adjusted trade surplus increased to 27.5 billion euros, surpassing both the previous month's figure of 23.3 billion euros and analysts' expectations of a 21.5 billion euro surplus. This improvement was driven by a significant rebound in exports, which grew by 6.3% month over month, a notable recovery from the previous decline of 4.5% and well above the consensus estimate of a 1.5% increase. Imports also saw a positive shift, growing by 3.6%, in contrast to the earlier 6.7% decline and surpassing the expected 1.8% improvement.
Company News
Symrise (SY1.DE), a German specialty chemicals company, gains as much as 4.0%, the highest level since November 2022, after announcing better-than-expected margin guidance for 2024. This news provided relief to investors following a profit warning in December amid challenges of expensive raw materials. The company's 2023 year results showed an Ebitda of €851.7 million against an €900.6 million estimate, and a dividend per share of EU1.10. For 2024, Symrise reaffirms its long-term growth and profitability targets, expecting a continued growth rate of 5% to 7%.
Source: xStation 5
Lufthansa (LHA.DE) is scheduled to report its quarterly earnings Today. The fourth quarter is expected to see an adjusted EBIT of €405.5 million:
- passenger airlines are estimated to bring €265.9 million
- logistics €80.7 million
- eurowings might face a loss of €68.1 million
- maintenance, Repair, and Overhaul (MRO) operations could add €164.3 million
The overall adjusted EBIT margin is projected at 4.07%, with revenue expected to be around €9.29 billion.
Rheinmetall (RHM.DE) has secured a significant contract to supply several million electric oil pumps to an undisclosed automobile manufacturer. The deal is valued in the lower three-digit million-euro range and holds the promise of further service orders. The company will begin production of the initial order in May, with an additional production increase set to commence in February 2025. This extended production is scheduled to last for six years, concluding in December 2030.
Source: xStation 5
Tui (TUI.DE), one of the top gainers among German stocks, recording over 5.00% gain. This upturn follows a recent change in Morgan Stanley's assessment of TUI to upgrade its rating from 'Equal-weight' to 'Overweight' and raised its target price from 9 to 10 euros.
Source: xStation 5
